ASIA-EUROPE spot rates contracted further in the past week, dropping 3.8 per cent week to week to US$1,172 per TEU, according to the latest Shanghai Containerised Freight Index (SCFI).

The spot market on the Asia-Mediterranean trade saw a similar slide in rates last week, dipping 2.3 per cent from the previous week to $1,120 per TEU.



The only major trade to escape a decline in rates for the week was the Asia-US west coast trade, which posted a minor increase in the average rate of 0.6 per cent, or $16 per FEU, to $2,727.



Asia-US east coast rates, on the other hand, plunged 5.9 per cent, or $234, to $3,732 per FEU.



Across all trades covered by the index the SCFI was down two per cent to 1,260.54 points.

THE world's fourth smallest country, Tuvalu with a population of 10,500, has deregistered all Iranian-linked vessels to comply with UN and US sanctions, the Tuvaluan government announced.

In its latest press release issued earlier this week, the British Commonwealth country said that there are no longer any National Iranian Tanker Company (NITC) tankers and/or Iranian-linked vessels registered under the Tuvaluan flag.



The registrar of the Tuvalu Ship Registry, Uale Sinapati, explained that during the time of registration, the registry understood that NITC and their vessels were not sanctioned by the United Nations or the United States and thus agreed to register the NITC tankers on condition that all the tankers maintain their class and statutory certification by members of the International Association of Classification Societies (IACS) and be fully compliant with IMO conventions.



However, NITC and their vessels, were included in the US OFAC list of July 12 and the Tuvalu Ship Registry shortly after received official instructions from the Government of Tuvalu to de-flag NITC tankers.



"Understanding the importance of complying with US sanctions, the Tuvalu Ship Registry formally declares that the de-registration process is complete and there is not a single NITC vessel or Iranian-linked vessel registered under Tuvalu as of September 22," Mr Sinapati said in a letter to all parties concerned.

THE groundwork has begun to develop a global shipping hub in Xiamen, a special economic zone in East China's Fujian province, in a bid to promote its shipping, logistics and tourism industries with the establishment of the Southeast China International Shipping Centre expected to be operational in 2020.

The project was initially proposed by the Fujian provincial government in 2010 and the centre is aimed at gathering important shipping resources and to create a comprehensive shipping services system at the Port of Xiamen.



Given the city's location on the western side of the Taiwan Straits, the shipping centre will also strengthen ties with port cities in Taiwan, such as Kaohsiung, Taichung and Keelong, said Cai Liangya, director of the Xiamen Port Authority, reported China Daily.



Xiamen celebrated the 30th anniversary of its establishment as a special economic zone last year and the State Council released a report including guidelines for setting up an international shipping centre in the city. The central government also gave substantial support for the city's industrial transformation.



Under the plan, the centre's core framework and services will be in place by 2020, and by then, the shipping centre will be able to deal with a variety of businesses, such as international transit, purchase, allocation and distribution, ship leasing, customs clearance, and offshore outsourcing.



"The shipping hub will become the country's fourth international shipping centre," Mr Cai said. "Together with Shanghai, Tianjin, and Dalian, Xiamen will help enhance the country's shipping intelligence network," Mr Cai said.



Fujian province's party chief Sun Chunlan said building the shipping centre is about more than just creating a world-class harbour. "The project concerns regional development. The shipping centre will not only involve shipping resources but also human resources, capital, technology and information. In addition to the tertiary sector of the economy, secondary industry will also be spurred by the creation of the shipping hub," he added.



Preferential policies have been introduced to advance the process of building the international shipping centre. According to the Xiamen Port Authority, inbound imported cargo will be free of duties and Domestic cargo entering the zone will be designated as exports and relevant taxes will be refunded.



In a major move to develop Xiamen into an international shipping centre, the Xiamen Shipping Exchange officially became operational in June. It serves as a platform for buying, selling and leasing ships and the exchange will act as a clearinghouse for shipping information and a provider of other services, such as cargo trading, personnel training, and trading agency services.



Also in June, a maritime arbitration centre was set up in Xiamen allowing the city to serve as an international venue for resolving global shipping disputes. In addition, construction of the Xiamen Qianchang Railway Logistics Park started during the 16th China International Fair for Investment and Trade, which was held from 8 to 11 September. Other developments include the construction of the country's first large luxury cruise liner, a cruise terminal and a shipping business centre.



The transformation of Xiamen into an international shipping centre is expected to reap initial results by 2015, and by then, the cargo throughput of Xiamen port will reach 200 million tonnes with container throughput reaching 10 million TEU.



In the first four months of this year, Xiamen recorded a container throughput of 2.06 million TEU, up 11.8 per cent year on year and a throughput tonnage of 52.4 million tonnes, up 5.9 per cent. Last year, Xiamen handled 6.5 million TEU, ranking seventh among Chinese ports and 18th in the world.

JAPAN exported US$11.23 billion worth of goods to the United States in August, an increase of 10.3 per cent over the same month last year, also marking the 10th straight month of rising Japanese exports to the US.

The August data comes amid concerns about a negative impact of the territorial dispute between Japan and China on bilateral trade.



Japan's imports from the US fell for the first time in two months in August, rose, according to the Japanese Ministry of Finance, edging down 0.1 per cent year on year to $6.38 billion. As a result, Japan's trade surplus with the US expanded for seven months in a row, swelling 27.8 per cent from a year earlier to $4.85 billion.



The growth in US-bound shipments in August, despite a weak economic recovery in the US, was led by auto parts, up 39.5 per cent; construction, up 60.7 per cent, and mining machinery and motors, up 20.7 per cent.



The decline in imports from the US was led by grain, down 31.1 per cent; medical products, down 21 per cent and electronics parts, down nine per cent.



Japan is now the world's third-largest economy after the US and China and is heavily dependent on exports for growth. The US is Japan's second-largest trading partner after China.

HONG KONG's Overseas Orient Line (OOCL) Logistics has been appointed by Bayer Material Science China (Bayer China) to manage its supply chain logistics operations for domestic and international shipments.

Services to be provided include monitoring the performance of Bayer China's third party logistics (3PL) provider in domestic transportation, Customs declaration, import and export forwarding, inventory control, and customised logistics solutions throughout the whole supply chain.



"I would like to attribute the success in reaching this ground-breaking contract agreement to the innovative ideas of the management in Bayer China," said Allan Wong, chief executive officer of OOCL Logistics.



"The management of Bayer has been well aware that supply chain is crucial to their sustainable and diversified business growth," he added.

SINOTRANS Eastern Co, the Shanghai-based unit of Sinotrans & CSC Holdings, has sealed a deal on logistics supply chain cooperation with Canadian partners to boost bilateral trade.

Sinotrans signed the memorandum of understanding with Winnipeg-based inland tri-modal port operator CentrePort Canada to work together to develop new technologies, logistics and supply chain systems that will help western Canadian farmers and other businesses export grain, timber and beef to China.



Also part of the venture, is Invent IOT Technology, a Canadian company specialising in radio-frequency identification technology (RFID), which is used to ensure the security of shipments as well as verify the quality and origin of the product.



CentrePort Canada is seeking to bolster the exports to China of Canadian products such as grain, timber and beef.



The agreement will help advance CentrePort's recently-launched China project, which involves building a new supply platform to facilitate exports to China, and partnering with Invent IOT Technology, using RFID tags and labels to secure and track Manitoba cargo as it is shipped overseas.



"This is about leveraging CentrePort's advantages, such as its extensive reach into North America and strong partnerships with companies in China, to provide Manitoba and Canadian producers with new opportunities to sell and export prime, high-quality products including food," Manitoba Premier Greg Selinger said. "It's a positive for our economy, particularly our agricultural sector, and will help differentiate and promote Manitoba products in a competitive, global marketplace."

THE Tianjin Port North Zone is expected to accommodate three large container terminals with 32 berths capable of handling 16 million TEU annually.

The three facilities are the East Pierhead, the Free Trade Zone and the North Pierhead, located on a 7.8 square kilometre site with a coastline of 10 kilometres, according to China Daily.



The container terminal at the East Pierhead includes the berths located at the Port Basin #4 and the northern and southern sides of the East Pierhead, which have all been completed with an annual handling capacity of 3.8 million TEU.



In addition, the quayline affiliated to the Port Basin #4 Container Terminal Company is 826 metres with a maximum capacity of one million TEU. The coastline of the Orient container terminals, to the south of the East Pierhead, is 1,136 metres, and they have a total handling capacity of 1.3 million TEU. The coastline of the Five Continents International Container Dock to the north of the East Pierhead is 1,202 metres with 1.5 million-TEU capacity.



The container terminals to the east of the free trade zone include Phase I and Phase II which are under construction, and the proposed Section C container terminal for the North Port Basin. They have a total coastline of 3,300 metres with a total annual capacity of 6.6 million TEU. In the near and medium-term, the terminals to the east of the free trade zone will serve as the main force of marine mainline transport for developing containers at Tianjin.



The North Pierhead Container Terminal on 3.6-square kilometres have a quayline of 3.5 kilometres, and able to handle 5.6 million TEU a year.

A NEW ZEALAND High Court ruling has cleared the way for the Port of Tauranga to dredge its shipping channel to 15 metres, 3.3 metres more than its current depth, making the harbour at full build-out accessible to 8,000-TEU ships, which is now limited to 4,000-TEUers.

The NZ$35 million (US$28.9 million) first stage, likely to take six months, will give access to 6,000-TEUers, reports the New Zealand Herald.



Justice John Priestley dismissed the appeal of the Ngati Ruahine hapu, saying he was satisfied with the decision reached by the Environment Court last year and he could not see any "errors of law".



Mr Ruahine had appealed against the Environment Court's decision, claiming the court had not properly considered how the consent conditions would provide for the relationship between the native New Zealanders.



The dredging will cause some disturbance to pipi beds and kaimoana fishing grounds, but Justice Priestley said the Environment Court had carefully and correctly weighed the adverse cultural effects and balanced them against the national and regional significance of the Port of Tauranga.



Said port property manager Tony Reynish: "It is a very important decision for New Zealand's exporters and importers who stand to benefit significantly from the gradual introduction of bigger ships which are more cost and fuel efficient. It keeps the Tauranga at the forefront of New Zealand ports."



The dredging will be carried out in two stages, with the first stage unlikely to start for at least another year. Before dredging can begin, modelling work needs to be completed to determine just how much sand will need to be removed from the channel to allow the bigger ships through.

THE threat of piracy from Somalia is unlikely to abate because of the lucrative gains made, says Tim Holt, head of intelligence and special contingency risks at the London insurance broker Willis Group.

But Mr Holt opposed the use of force. "Communities must be presented with the opportunity to earn a wage that offers them a similar quality of life to what they currently experience," said Mr Holt.



Providing such a standard of living would be expensive. "Piracy is the second largest generator of income in Somalia, yielding an estimated US$200 million annually," said Mr Holt in his report on the problem.



"Somalia's two main pirate syndicates continue to be active and show little sign of disarray. They have not had to shift anchorages and have the funds to consolidate their hold on it as necessary.



"The pirates have the capability to adapt. Some have begun to offer their services as 'counter piracy' and 'negotiation' experts. There has also been a recent acceleration in kidnap for ransom on land of aid workers and tourists who are then transferred to the coast for ransom negotiations," he said.



"As pirate financiers invest more and more in the success of [pirate] operations, lucrative opportunities for local business have vastly expanded. A $4 million ransom will be injected back into the local economy, benefiting a community that once lived in abject poverty," he said.



"There is little wonder why the practice has boomed when Somali per capita income is $600 and a minimum $10,000 is available for each perpetrator of a successful operation. With 90 per cent of the world's trade is transported by sea, the opportunities are vast," Mr Holt said.

DAR ES SALAAM has installed an integrated radar and automatic identification system (AIS) coastal surveillance system with support from the UN' International Maritime Organisation (IMO) anti-piracy programmes and that of the US and Tanzania governments.

The partners spent the last 12 months delivering this system to provide a coastal picture for the Tanzanian military, as well as the civilian authorities at the Dar es Salaam Maritime Rescue Sub-Centre and at the Information Sharing Centre.



Conceived as a bilateral military project between the US and Tanzania, the IMO joined the project to integrate the system for civil and maritime law-enforcement use. The aim is to bring all maritime agencies together to counter piracy that threaten the coast of Tanzania, reports GAC Hot Port News.



The opening ceremony marked the completion of the first phase of a wider programme to provide similar systems in states bordering the Mozambique Channel and its approaches. The work is being undertaken as part of the IMO's counter-piracy programme under the Djibouti Code of Conduct funded by contributions to the Djibouti Code Trust Fund from its donors: France, Japan, Netherlands, Norway, Republic of Korea, Saudi Arabia and the Marshall Islands.

CHINA is now the second largest market for US potato exports - after Canada - up 57 per cent to 99,219 tonnes in the marketing year ending June 30, according to the United States Potato Board (USPB).

US potato exports to Asia increased 59 per cent to 64,888 tonnes, led by 100 per cent increase in chipping potato exports to Japan and Thailand with strong sales of both chipping and table potatoes to Malaysia and Taiwan.



American fresh potatoes, often moved in open-sided ISO containers, were valued at $204 million, an increase of 10 per cent, with volume at 407,114 tonnes, an increase of two per cent.



Despite no potato board promotion, South Korean consumption of American fresh potatoes soared 46 per cent to 19,823 tonnes, in large part because a free trade agreement coming into force.



Total potato exports came to 1.5 million tonnes worth US$1.58 billion, led by a 17 per cent increase in frozen potatoes.



Frozen potatoes, moved in reefer boxes, was the biggest segment at 60 per cent and worth $989 million this year, up 22 per cent, with volume up 17 per cent to 905,941 tonnes. Japan is the biggest consumer of US frozen potatoes at 300,528 tonnes, up five per cent.



Global demand for US fresh and frozen potatoes increased 1.5 million tonnes worth almost US$1.6 billion during the marketing year, representing a 10 per cent increase in volume and a 17 per cent increase in value year on year, said the USPB.

THE Canadian National Railway (CN) says it is buying 2,200 new freight cars in 2012, as well as 1,300 new containers, to support traffic growth and improve customer service.

"CN is acquiring new cars and containers for forest products, metals, minerals, coal, iron ore, steel, consumer goods, finished vehicles and grain," said CN vice president Jean-Jacques Ruest.



CN's largest rolling stock addition in 2012 is the acquisition of 600 premium 60-foot, double-door box cars for forest products, and metals traffic. These higher payload cars help improve customer loading efficiency.



The railway is also getting 1,300 containers for grocery and consumer goods, 558 high-capacity modern covered hoppers for grain exports, 317 multi-level cars for finished vehicles deliveries to major cities, 300 gondolas for coal exports, 232 new ore cars for pelletised iron ore produced in Minnesota to supply steel mills in the United States, 200 multi-purpose box cars for the North American freight car pool.



Mr Ruest added: "CN's rolling stock acquisition strategy is responding to evolving market conditions and is intended to ensure reliable, predictable supply chains for our customers."

JAPAN's Mitsui OSK Lines Ltd (MOL) has issued the English version of its Environmental and Social Report 2012, introducing the company's approach to corporate social responsibility (CSR), its philosophy on protecting the environment and its latest initiatives for stakeholders.

Several affairs, such as "A series of natural disasters occurring around the world, including the Great East Japan Earthquake and flooding in Thailand; "A global economic slowdown triggered by the European debt crisis;" and "The public losing faith in institutions due to dysfunctional corporate governance through cruise ship accidents and other failures" raises questions about corporate social responsibility during fiscal year 2011.



"The events have reaffirmed the societal mission of the MOL Group, which is to support people's lives and industry around the world," a company statement said.



The special features in this year's report explain the details of MOL's major CSR initiatives as a shipping company, entitled: "Forging Ahead to Become the World Leader in Safe Operation." This special feature outlines how measures to enhance safe operation, which are unique to MOL and include onboard efforts and support from onshore staff, are utilized in actual vessel operation.



The "Senpaku ISHIN" section covers the Emerald Ace launched in June 2012, which is the world's first hybrid car carrier equipped with solar panels and lithium-ion batteries, and the concept of the next-generation vessel with a significantly lower environmental burden.



The "Global Social Contribution Activities" report introduces the principles of MOL's social contribution efforts and discusses activities worldwide based on those principles.



The "Response to the Great East Japan Earthquake" special feature takes an in-depth look at the company's disaster-response measures and efforts to enhance its risk-management system.



In addition, the report introduces MOL Group businesses from the viewpoint of the reader, explaining how the MOL Group supports people's lives as well as global industry.



The company said its goal is to make the MOL Group an excellent and resilient organization that grows sustainably and harmoniously with society while gaining the trust of stakeholders through those efforts.



The English version of the MOL Environmental and Social Report 2012 is available online at: http://www.mol.co.jp/csr-e/report/download/index.html

SINGAPORE Changi Airport handled 146,400 tonnes of cargo in August, representing a decline of 4.4 per cent year on year.

With regards to passenger numbers, they rose by 10.9 per cent in August to 4.28 million. Air traffic movements for the month also grew by 6.5 per cent to 27,400 flights.



Demand for air travel to and from south east Asia, south Asia, south west Pacific, the Middle East, Africa and the Americas was strong, with double-digit growth registered for each of these regions, a statement said.



In the first eight months of 2012, cargo volumes dropped by 1.9 per cent to total 1.20 million tonnes compared to the same period a year earlier.



Year-to-date passenger numbers are up 10.5 per cent to 33.6 million, and flight movements are up nine per cent to 214,000 flights.



On the cargo front, Singapore Airlines Cargo commenced a weekly freighter service to Viracopos in Brazil in August. The return flight takes a Viracopos-Dallas-Brussels-Sharjah-Singapore route.



Last month also saw the launch by Scoot of four times-weekly Singapore-Tianjin services and commenced thrice-weekly Singapore-Taipei services this month. These were the airline's fourth and fifth destinations, respectively, since the launch of its Sydney, Gold Coast and Bangkok flights.

CHATEAUROUX-DEOLS "Marcel Dassault" Airport in north central France has received 180 breeding cows from a flight to Mongolia operated by EFIS Air, a member of the ECS Group.

EFIS Air had chartered a Boeing 747 freighter for the flight to Ulan Bator to ensure the 150 Limousin and 30 MontbEliarde cattle arrived safely at their destination. The cows are being used in a programme to establish the breeds in Mongolia.



On arrival at the airport, EFIS Air arranged for the cows to be carefully loaded into specially created shipping pens to ensure their safety during the flight, a company release said.



Managing director Alain Boussard said: "Moving livestock requires great care and attention to ensure the welfare of the animals and to meet all of the regulatory requirements."

EUROPEAN UNION officials are reportedly considering a suspension their aviation carbon emission tax to avoid a trade war with China and the United States, according to the British International Freight Association (BIFA) newsletter.

"China and India have already forbidden their carriers to pay this fee and reports from Washington suggest the US will be the next important state to instruct its carriers not to pay the levy," said the report.



"This suspension is meant to create time to create a global agreement on climate charges for the aviation industry," said the newsletter.



"As a neutral trade body, BIFA takes no political stance on this matter but keeps a watching brief on this important topic for our members. As major users of air freight, both in the bellyhold of passenger aircraft and maindeck freighter aircraft, BIFA members must be aware that this move may impact on air freight costs in the coming months," the newsletter said.



"This is not a dispute caused by BIFA Members or business in general but is a political argument in the corridors of power in Beijing, Brussels, Washington and New Delhi. Whenever the arguments are made, BIFA will be there, promoting our members' interests." the newsletter said.

GERMAN flag carrier Lufthansa has announced plans to build a modern logistics centre at Frankfurt Airport, after the group' s supervisory board approved the investment needed to develop the infrastructure of its cargo business.

The new building will replace the existing 30-year-old Lufthansa Cargo Centre, and is to open in 2018. The company said it is "investing a mid triple-digit million euro sum" in the new logistics facility.



"We are investing in the future and in our Frankfurt base," said group CEO and chairman Christoph Franz. Frankfurt would remain the central hub for the group's cargo business "despite the night-flight ban".



The carrier said in a statement: "The night-flight ban meant considerably adjusting the original plans. In view of the competitive disadvantages compared with other locations, it was therefore all the more important to have access to a reliable and efficient infrastructure."



The new logistics centre will be built mainly on the existing site in the northern part of Frankfurt Airport. State-of-the-art technological infrastructure will facilitate much faster turnaround times for shipments and is expected to "dramatically improve" the quality of service for customers.



"Building of a new logistics centre is a major component of our 'Lufthansa Cargo 2020' strategy," said Lufthansa Cargo CEO and chairman Karl Ulrich Garnadt. "The new facility will enable us to take a quantum leap in the logistics process and will make the company fit for the challenges of the future."



Construction of the main building is scheduled to begin in 2014. Since the air cargo terminal will be built on the existing site, the area will have to be cleared and prepared over the coming months. Some processes will be relocated to other areas. Operations will, however, continue while construction is in progress.